Online travel portal MakeMyTrip is planning to shift its focus from online ticket servicing to holiday and package tour segment. The company which currently gets 30 per cent of its revenue from hotel and package tour business intends to grow the share to around 50 per cent within couple of years.
“With the internet boom, online air ticketing is getting highly commoditised and many airlines want to cut commissions. In the long term, the economic scenario in airfares will get tougher,” said Deep Kalra, founder and CEO, MakeMyTrip.
He also said, “When we launched the IPO in 2010 revenue contribution from our air ticket business was around 90 per cent and today the same has come down to 70 per cent. It is a conscious effort, we are focusing on hotel and packages quite a bit.”
The company also believes that South East Asia offers a huge opportunity in the hotels and package tour business. It also said that only 5 per cent of the hotel industry in the country has adopted the online way for business and this offers tremendous opportunity in the segment.
The Nasdaq-listed company which raised around $80 million through its IPO in 2010 has already made two acquisition in the hotel and package tour segment.
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